Comparing inventory methods. Assume that a firm seperately determined inventory under FIFO and LIFO and then compared the results.

1. In each of the below, select the less than(<), greater than(>), or equal sign(=) for each comparision, assuming periods of rising prices.

a. FIFO ending inventory 1110 ending inventory
b. FIFO cost of goods soldIWO cost of goods sold
c. FIFO net incomeLIFO net income
d. FIFO income taxUFO income tax

2. Why would management prefer to use LIFO over FIFO in periods of rising prices'